According to the data released by World Steel Association (worldsteel), global crude steel production for the 66 countries reporting to worldsteel improved 13.1% year over year to 112 million tons in October 2009. Following a revision of the September production figures, this is the second month in a row of positive growth rate since September 2008. 

Total crude steel production in the 66 reporting countries for the first ten months of 2009 was 982 million ton; a decrease of 13.5% over the same period of 2008. Steel production had reached its highest level in July this year on the back of a moderate rise in demand and the resumption of idle facilities by producers. Total output of 103.9 million tons was an improvement of 4% from 99.8 million tons produced in the last month, but down 11.1% year over year. 

Crude Steel production in China, the largest producer and consumer of crude steel was 51.7 million ton in October 2009, up 42.4% from October 2008. Russia’s crude steel production for October 2009 expanded 24.2% to 5.6 million ton. Ukraine produced 2.7 million ton in October 2009, 42.9% higher than the same month last year. Turkey produced 2.3 million ton of crude steel in October 2009, a 25.5% increase from October 2008. 

However, steel production in Japan slipped 12.9% year over year to 8.8 million ton in October 2009. South Korea showed a decline of 0.7% from October 2008, producing 4.6 million ton of crude steel in October 2009. In the European Union, Germany’s crude steel production was 3.5 million ton in October 2009, a decrease of 11% from October 2008. Italy produced 2.2 million ton in October 2009, down by 15.8% from October 2008. 

The US produced 5.9 million ton of crude steel in October 2009, a decrease of 12.4% compared to the same month last year. Key steel consuming industries such as auto, shipbuilding and construction have been experiencing weak demand in the last quarters, forcing global steel makers to lower production levels. 

U.S. Steel Corp. (X) had slashed production by almost 62% during the second quarter of 2009, while Korean steel maker POSCO (PKX) was forced to reduce production for the first time in its history. POSCO curtailed production by about 15% during the period. However, world crude steel capacity utilization has been steadily improving since its lowest point in December 2008. In October 2009, the world total capacity utilization ratio was 76.0%, 17.8 % higher than December 2008.
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